Exhibit 99.1
BEAR ISLAND PAPER COMPANY, L.L.C.
80 FIELD POINT ROAD
GREENWICH, CT. 06830
PRESS RELEASE – 2nd QUARTER 2004
Greenwich, Connecticut, July 29, 2004 – Bear Island Paper Company, L.L.C., a wholly owned subsidiary of Brant-Allen Industries, Inc., today reported a net loss of $1,449,000 for the second quarter ended June 30, 2004, compared to a net loss of $3,274,000 for the second quarter of 2003. Profit from operations for the second quarter of 2004 was $1,931,000 compared to a loss of $369,000 in the same period in 2003. Gross sales for the three months ended June 30, 2004 and 2003 were $31,867,000 and $26,553,000, respectively.
Results for the quarter ended June 30, 2004 compared with the second quarter of 2003 were favorably impacted by a 12% increase in average per ton selling price of newsprint and 8% increase in volume offset in part by a 3% increase in average per ton manufacturing costs. Results for the three months ended June 30, 2003, were favorably impacted by a non-operational gain in Other Income of $ 712,000 which represents an insurance recovery settlement from a fire damage claim.
For the six months ended June 30, 2004, the Company reported a net loss of $ 4,340,000 compared to a net loss of $ 8,417,000 for the same period in 2003. Profit from operations for the six months ended June 30, 2004 was $ 2,516,000 compared to a loss of $ 2,368,000 in the same period in 2003. Gross sales for the six months ended June 30, 2004 and 2003 were $ 60,328,000 and $ 51,638,000, respectively.
Results for the six months ended June 30, 2004, were favorably impacted by a 12% increase in average per ton selling price of newsprint and 4% increase in volume offset in part by a 3% increase in average per ton manufacturing costs. The increased manufacturing expenses were primarily attributed to higher furnish costs in 2004 compared to 2003.
Bear Island Paper Company is a producer of high quality newsprint suitable for four-color printing whose customers include leading newspaper publishers in the United States.
THE FOLLOWING TABLE COMPARES 2004 AND 2003 FOR THE THREE AND SIX MONTHS PERIODS:
BEAR ISLAND PAPER COMPANY, L.L.C.
CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS OF DOLLARS)
(unaudited)
2004 | 2003 | |||||||
THREE MONTHS ENDED JUNE 30, | ||||||||
GROSS SALES | $ | 31,867 | $ | 26,553 | ||||
COST OF SALES | (29,623 | ) | (26,645 | ) | ||||
GROSS PROFIT (LOSS) | 2,244 | (92 | ) | |||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | (313 | ) | (277 | ) | ||||
INCOME (LOSS) FROM OPERATIONS | 1,931 | (369 | ) | |||||
OTHER INCOME (DEDUCTIONS): | ||||||||
INTEREST EXPENSE | (3,383 | ) | (3,619 | ) | ||||
OTHER INCOME | 3 | 714 | ||||||
NET (LOSS) | $ | (1,449 | ) | $ | (3,274 | ) | ||
SIX MONTHS ENDED JUNE 30, | ||||||||
GROSS SALES | $ | 60,328 | $ | 51,638 | ||||
COST OF SALES | (57,141 | ) | (53,453 | ) | ||||
GROSS PROFIT (LOSS) | 3,187 | (1,815 | ) | |||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | (671 | ) | (553 | ) | ||||
INCOME (LOSS) FROM OPERATIONS | 2,516 | (2,368 | ) | |||||
OTHER INCOME (DEDUCTIONS): | ||||||||
INTEREST EXPENSE | (6,860 | ) | (6,767 | ) | ||||
OTHER INCOME | 4 | 718 | ||||||
NET (LOSS) | $ | (4,340 | ) | $ | (8,417 | ) | ||